UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 19, 2016

 
 
LANDSTAR SYSTEM, INC.
(Exact name of registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	021238	 	06-1313069	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	
 	 	
13410 Sutton Park Drive South, Jacksonville, Florida	 	32224	
(Address of principal executive offices)	 	(Zip Code)	
(904) 398-9400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02 Results of Operations and Financial Condition
On October 19, 2016, Landstar System, Inc. issued a press release announcing results for the third quarter of fiscal 2016. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 7.01 concerning the presentation to Landstar investors is hereby incorporated into this Item 2.02 by reference.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 7.01 Regulation FD Disclosure
A slide presentation, dated October 19, 2016, is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The slide presentation provides information that may be referred to by the Company on its conference call with investors scheduled to occur on October 20, 2016 in connection with the Company’s release of results for the third quarter of fiscal 2016.
The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits

Exhibits	 	 	
 	 	
99.1	 	News Release dated October 19, 2016 of Landstar System, Inc.	
 	 	
99.2	 	Slide Presentation dated October 19, 2016 of Landstar System, Inc.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	  	LANDSTAR SYSTEM, INC.	
 	 	 	
Date: October 19, 2016	  	By:	  	/s/ L. Kevin Stout	
 	  	Name:	  	L. Kevin Stout	
 	  	Title:	  	Vice President and Chief Financial Officer	

Exhibit 99.1

 
 	 	 	
For Immediate Release	  	Contact: Kevin Stout	
 	  	Landstar System, Inc.	
 	  	www.landstar.com	
October 19, 2016	  	904-398-9400	
LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $788 MILLION
AND DILUTED EARNINGS PER SHARE OF $0.86
Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported third quarter diluted earnings per share of $0.86 on revenue of $788 million in the 2016 third quarter. Landstar reported diluted earnings per share of $0.90 on revenue of $842 million in the 2015 third quarter. Gross profit (defined as revenue less the cost of purchased transportation and commissions to agents) was $121.8 million in the 2016 third quarter compared to $126.8 million in the 2015 third quarter. Operating margin, representing operating income divided by gross profit, was 48.0 percent in the 2016 third quarter.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2016 third quarter was $732.9 million, or 93 percent of revenue, compared to $779.8 million, or 93 percent of revenue, in the 2015 third quarter. Truckload transportation revenue hauled via van equipment in the 2016 third quarter was $465.8 million compared to $466.2 million in the 2015 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2016 third quarter was $248.9 million compared to $293.3 million in the 2015 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $43.4 million, or 6 percent of revenue, in the 2016 third quarter compared to $50.5 million, or 6 percent of revenue, in the 2015 third quarter.
Trailing twelve-month return on average shareholders’ equity was 28 percent and trailing twelve-month return on invested capital, net income divided by the sum of average equity plus average debt, was 22 percent. During the 2016 third quarter,

LANDSTAR SYSTEM/2
 
Landstar purchased 350,000 shares of its common stock at an aggregate cost of $24.0 million bringing the total number of common shares purchased during the thirty-nine weeks ended September 24, 2016 to 773,000 shares at an aggregate cost of $50.5 million. Currently, there are approximately 1,036,000 shares of the Company’s common stock available for purchase under Landstar’s authorized share purchase program. As of September 24, 2016, the Company had $227 million in cash and short term investments and $214 million available for borrowings under the Company’s senior credit facility.
In addition, Landstar announced today that its Board of Directors has declared a quarterly dividend of $0.09 per share payable on December 2, 2016, to stockholders of record as of the close of business on November 8, 2016. It is currently the intention of the Board to pay dividends on a quarterly basis going forward.
Commenting on Landstar’s 2016 third quarter, Landstar’s President and CEO Jim Gattoni said, “Diluted earnings per share was $0.86 in the 2016 third quarter, the second highest third quarter diluted earnings per share in Landstar history, second only to 2015 third quarter record diluted earnings per share of $0.90. Revenue was $788 million with gross profit of $121.8 million in the 2016 third quarter, the second highest third quarter gross profit in Landstar history, second only to 2015 third quarter record gross profit of $126.8 million. 2015 third quarter revenue was a record $842 million and included $35 million of revenue from a project on behalf of a customer in the automotive sector. That project was completed at the end of 2015. Overall, we continued to have difficult year-over-year comparisons to 2015 driven mostly by tougher overall industry conditions in 2016 and revenue from the previously referenced automotive project in 2015.”
Gattoni continued, “Landstar executed well when considering the softness in U.S. manufacturing and more readily available truck capacity in 2016. Given this environment, Landstar managed a 4 percent increase in the number of loads hauled via truck in the 2016 third quarter over the 2015 third quarter, when excluding approximately 20,000 truckloads hauled via unsided/platform equipment for the automotive project in the 2015 third quarter.

LANDSTAR SYSTEM/3
 
Overall, the number of loads hauled via truck in the 2016 third quarter decreased 1 percent from the 2015 third quarter. This overall decrease in volume was driven by a 6 percent increase in the number of loads hauled via van equipment, offset by a 14 percent decrease in the number of loads hauled via unsided/platform equipment. Excluding the loadings related to the automotive project, Landstar experienced a 1 percent increase in the number of loads hauled via unsided/platform equipment. Landstar also achieved a 4 percent increase in the number of loads hauled via railroads, ocean cargo carriers and air cargo carriers in the 2016 third quarter over the 2015 third quarter.”
Gattoni further continued, “Revenue per load on loads hauled via truck in the 2016 third quarter was 5 percent below the 2015 third quarter. This represents a sequential improvement, however, as revenue per load on loads hauled via truck in the 2016 first quarter compared to the 2015 first quarter and in the 2016 second quarter compared to the 2015 second quarter decreased 10 percent and 9 percent, respectively. The reduction in the percentage shortfall in revenue per load on loads hauled via truck in the 2016 third quarter was due to an increase in revenue per load in the 2016 third quarter compared to the 2016 second quarter that was slightly ahead of recent second quarter to third quarter trends, coupled with weaker revenue per load in the 2015 third quarter as compared to the first half of 2015. Additionally, the average cost of a gallon of diesel fuel was approximately 10 percent lower during the 2016 third quarter compared to the 2015 third quarter putting additional pressure on pricing, especially as it related to loads hauled via truck brokerage carriers. The softer pricing environment contributed to the decline in the 2016 third quarter operating margin, which was 48.0 percent, compared to 50.4 percent in the 2015 third quarter.”
Commenting on Landstar’s 2016 fourth quarter, Gattoni stated, “I expect the slow growth environment we have experienced during the first three quarters of 2016 to continue through the 2016 fourth quarter. As was the case in our 2016 second and third quarters, fourth quarter 2016 over fourth quarter 2015 revenue comparisons will include the effects of revenue derived from the automotive project previously referenced. The Company’s 2015 fourth quarter included approximately $38 million in revenue from

LANDSTAR SYSTEM/4
 
approximately 19,000 loads hauled via truck related to that project. Through the first few weeks of October, we have experienced the normal seasonal pattern for revenue per load on loads hauled via truck and, therefore, I anticipate revenue per load on loads hauled via truck to be below prior year’s fourth quarter in a mid-single digit range, consistent with the 2016 third quarter compared to the 2015 third quarter. Landstar’s fiscal year ends on the last Saturday of the calendar year, which this year is December 31, 2016, resulting in fiscal year 2016 representing a 53 week period. As such, the Company’s 2016 fourth quarter includes an extra week of operations. The number of loads hauled via truck during the first few weeks of October is trending slightly ahead of the historical third quarter to fourth quarter trend. Assuming that trend continues, and given the extra week in the 2016 fourth quarter, I would expect the number of loads hauled via truck in the 2016 fourth quarter to exceed the 2015 fourth quarter in a low-single digit range. As such, I expect 2016 fourth quarter revenue to be in a range of $800 million to $850 million. Assuming insurance and claims costs in the 2016 fourth quarter are approximately 3.2 percent of BCO revenue, representing average insurance and claims costs as a percent of BCO revenue over the past 5 years, I would expect diluted earnings per share to be in a range of $0.85 to $0.90 in the 2016 fourth quarter.”
Landstar will provide a live webcast of its quarterly earnings conference call tomorrow morning at 8:00 a.m. ET. To access the webcast, visit the Company’s website at www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s Third Quarter 2016 Earnings Release Conference Call.”
This earnings announcement, as well as an accompanying slide presentation, is available through the Company’s website at  http://investor.landstar.com  under “Presentations” and on a Form 8-K filed with the Securities and Exchange Commission.
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative

LANDSTAR SYSTEM/5
 
thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; decreased demand for transportation services; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; changes in fuel taxes; status of independent contractors; regulatory and legislative changes; catastrophic loss of a Company facility; intellectual property; unclaimed property; regulations focused on diesel emissions and other air quality matters; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2015 fiscal year, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
About Landstar:
Landstar System, Inc. is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation logistics services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. All Landstar transportation services companies are certified to ISO 9001:2008 quality management system standards and RC14001:2013 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market ®  under the symbol LSTR.
(Tables follow)

LANDSTAR SYSTEM/6
 
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)

 	  	Thirty Nine Weeks Ended	 	  	Thirteen Weeks Ended	 	
 	  	September 24,
2016	 	  	September 26,
2015	 	  	September 24,
2016	 	  	September 26,
2015	 	
Revenue	  	$	2,274,805	  	  	$	2,472,489	  	  	$	787,938	  	  	$	841,726	  	
Investment income	  	 	1,100	  	  	 	1,043	  	  	 	357	  	  	 	350	  	
 	 	 	 	 	
Costs and expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Purchased transportation	  	 	1,730,745	  	  	 	1,900,313	  	  	 	601,002	  	  	 	645,583	  	
Commissions to agents	  	 	189,075	  	  	 	199,113	  	  	 	65,144	  	  	 	69,297	  	
Other operating costs, net of gains on asset sales/dispositions	  	 	21,484	  	  	 	24,388	  	  	 	7,492	  	  	 	8,718	  	
Insurance and claims	  	 	42,795	  	  	 	37,610	  	  	 	12,488	  	  	 	10,502	  	
Selling, general and administrative	  	 	106,211	  	  	 	111,797	  	  	 	34,692	  	  	 	36,811	  	
Depreciation and amortization	  	 	26,109	  	  	 	21,253	  	  	 	9,016	  	  	 	7,185	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total costs and expenses	  	 	2,116,419	  	  	 	2,294,474	  	  	 	729,834	  	  	 	778,096	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	 	159,486	  	  	 	179,058	  	  	 	58,461	  	  	 	63,980	  	
Interest and debt expense	  	 	2,725	  	  	 	2,208	  	  	 	948	  	  	 	714	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income before income taxes	  	 	156,761	  	  	 	176,850	  	  	 	57,513	  	  	 	63,266	  	
Income taxes	  	 	58,985	  	  	 	67,016	  	  	 	21,235	  	  	 	23,918	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	97,776	  	  	$	109,834	  	  	$	36,278	  	  	$	39,348	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Earnings per common share	  	$	2.32	  	  	$	2.50	  	  	$	0.86	  	  	$	0.91	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	  	$	2.31	  	  	$	2.49	  	  	$	0.86	  	  	$	0.90	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Average number of shares outstanding:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Earnings per common share	  	 	42,223,000	  	  	 	43,975,000	  	  	 	42,039,000	  	  	 	43,446,000	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	  	 	42,341,000	  	  	 	44,134,000	  	  	 	42,170,000	  	  	 	43,607,000	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Dividends per common share	  	$	0.25	  	  	$	0.22	  	  	$	0.09	  	  	$	0.08	  	

LANDSTAR SYSTEM/7
 
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

 	  	September 24,
2016	 	 	December 26,
2015	 	
ASSETS	  	 	 	 	 	 	 	 	
Current assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	170,805	  	 	$	114,520	  	
Short-term investments	  	 	56,679	  	 	 	48,823	  	
Trade accounts receivable, less allowance of $4,881 and $4,327	  	 	409,047	  	 	 	462,699	  	
Other receivables, including advances to independent contractors, less allowance of $4,871 and $4,143	  	 	17,091	  	 	 	18,472	  	
Other current assets	  	 	15,188	  	 	 	11,604	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	668,810	  	 	 	656,118	  	
 	  	 	 	 	 	 	 	 	
Operating property, less accumulated depreciation and amortization of $187,566 and $182,591	  	 	261,943	  	 	 	225,927	  	
Goodwill	  	 	31,134	  	 	 	31,134	  	
Other assets	  	 	65,871	  	 	 	78,339	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	1,027,758	  	 	$	991,518	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  	 	 	 	 	 	 	 	
Current liabilities:	  	 	 	 	 	 	 	 	
Cash overdraft	  	$	27,725	  	 	$	35,609	  	
Accounts payable	  	 	201,872	  	 	 	223,709	  	
Current maturities of long-term debt	  	 	44,784	  	 	 	42,499	  	
Insurance claims	  	 	27,941	  	 	 	19,757	  	
Other current liabilities	  	 	48,027	  	 	 	47,963	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	350,349	  	 	 	369,537	  	
 	  	 	 	 	 	 	 	 	
Long-term debt, excluding current maturities	  	 	90,817	  	 	 	81,793	  	
Insurance claims	  	 	23,765	  	 	 	21,477	  	
Deferred income taxes and other non-current liabilities	  	 	56,097	  	 	 	52,474	  	
 	 	 	
Shareholders’ equity:	  	 	 	 	 	 	 	 	
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 67,522,281 and 67,391,616 shares	  	 	675	  	 	 	674	  	
Additional paid-in capital	  	 	198,736	  	 	 	195,841	  	
Retained earnings	  	 	1,477,179	  	 	 	1,389,975	  	
Cost of 25,747,002 and 24,972,079 shares of common stock in treasury	  	 	(1,167,391	) 	 	 	(1,116,765	) 	
Accumulated other comprehensive loss	  	 	(2,469	) 	 	 	(3,488	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	506,730	  	 	 	466,237	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	1,027,758	  	 	$	991,518	  	

LANDSTAR SYSTEM/8
 
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)

 	  	Thirty Nine Weeks Ended	 	 	Thirteen Weeks Ended	 	
 	  	September 24,
2016	 	 	September 26,
2015	 	 	September 24,
2016	 	 	September 26,
2015	 	
Revenue generated through (in thousands):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	$	1,351,980	  	 	$	1,412,824	  	 	$	465,785	  	 	$	466,226	  	
Unsided/platform equipment	  	 	700,369	  	 	 	823,767	  	 	 	248,939	  	 	 	293,252	  	
Less-than-truckload	  	 	54,066	  	 	 	61,297	  	 	 	18,139	  	 	 	20,341	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total truck transportation	  	 	2,106,415	  	 	 	2,297,888	  	 	 	732,863	  	 	 	779,819	  	
Rail intermodal	  	 	76,987	  	 	 	76,688	  	 	 	24,650	  	 	 	27,166	  	
Ocean and air cargo carriers	  	 	56,500	  	 	 	64,725	  	 	 	18,790	  	 	 	23,315	  	
Other (1)	  	 	34,903	  	 	 	33,188	  	 	 	11,635	  	 	 	11,426	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	2,274,805	  	 	$	2,472,489	  	 	$	787,938	  	 	$	841,726	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue on loads hauled via BCO Independent Contractors  (2)  included in total truck transportation	  	$	1,086,848	  	 	$	1,140,870	  	 	$	379,196	  	 	$	388,840	  	
 	 	 	 	 	
Number of loads:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	 	847,208	  	 	 	820,223	  	 	 	291,089	  	 	 	275,509	  	
Unsided/platform equipment	  	 	331,226	  	 	 	359,769	  	 	 	112,192	  	 	 	130,317	  	
Less-than-truckload	  	 	84,316	  	 	 	83,838	  	 	 	28,589	  	 	 	28,934	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total truck transportation	  	 	1,262,750	  	 	 	1,263,830	  	 	 	431,870	  	 	 	434,760	  	
Rail intermodal	  	 	36,120	  	 	 	32,350	  	 	 	11,940	  	 	 	11,670	  	
Ocean and air cargo carriers	  	 	14,910	  	 	 	13,320	  	 	 	5,130	  	 	 	4,700	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	1,313,780	  	 	 	1,309,500	  	 	 	448,940	  	 	 	451,130	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loads hauled via BCO Independent Contractors  (2)  included in total truck transportation	  	 	630,880	  	 	 	616,410	  	 	 	216,220	  	 	 	210,180	  	
 	 	 	 	 	
Revenue per load:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck transportation	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truckload:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Van equipment	  	$	1,596	  	 	$	1,722	  	 	$	1,600	  	 	$	1,692	  	
Unsided/platform equipment	  	 	2,114	  	 	 	2,290	  	 	 	2,219	  	 	 	2,250	  	
Less-than-truckload	  	 	641	  	 	 	731	  	 	 	634	  	 	 	703	  	
Total truck transportation	  	 	1,668	  	 	 	1,818	  	 	 	1,697	  	 	 	1,794	  	
Rail intermodal	  	 	2,131	  	 	 	2,371	  	 	 	2,064	  	 	 	2,328	  	
Ocean and air cargo carriers	  	 	3,789	  	 	 	4,859	  	 	 	3,663	  	 	 	4,961	  	
 	 	 	 	 	
Revenue per load on loads hauled via BCO Independent Contractors  (2)	  	$	1,723	  	 	$	1,851	  	 	$	1,754	  	 	$	1,850	  	
 	 	 	 	 	
Revenue by capacity type (as a % of total revenue);	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck capacity providers:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BCO Independent Contractors (2)	  	 	48	% 	 	 	46	% 	 	 	48	% 	 	 	46	% 	
Truck Brokerage Carriers	  	 	45	% 	 	 	47	% 	 	 	45	% 	 	 	46	% 	
Rail intermodal	  	 	3	% 	 	 	3	% 	 	 	3	% 	 	 	3	% 	
Ocean and air cargo carriers	  	 	2	% 	 	 	3	% 	 	 	2	% 	 	 	3	% 	
Other	  	 	2	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	
 	 	 	 	 	
 	  	 	 	 	 	 	 	September 24,	 	 	September 26,	 	
 	  	 	 	 	 	 	 	2016	 	 	2015	 	
Truck Capacity Providers	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BCO Independent Contractors (2)	  	 	 	 	 	 	 	 	 	 	8,889	  	 	 	8,869	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Truck Brokerage Carriers:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Approved and active (3)	  	 	 	 	 	 	 	 	 	 	30,860	  	 	 	29,127	  	
Other approved	  	 	 	 	 	 	 	 	 	 	15,691	  	 	 	13,813	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	46,551	  	 	 	42,940	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total available truck capacity providers	  	 	 	 	 	 	 	 	 	 	55,440	  	 	 	51,809	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trucks provided by BCO Independent Contractors  (2)	  	 	 	 	 	 	 	 	 	 	9,510	  	 	 	9,441	  	
 
(1)	Includes primarily premium revenue generated by the insurance segment.	
(2)	BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.	
(3)	Active refers to Truck Brokerage Carriers who have moved at least one load in the 180 days immediately preceeding the fiscal quarter end.	

October 19, 2016 Landstar System, Inc. Earnings Conference Call Third Quarter 2016 Date Published: 10/19/2016 Exhibit 99.2

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made during this presentation that are not based on historical facts are “forward looking statements.” During this presentation, I may make certain statements, containing forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Such statements are by nature subject to uncertainties and risks, including but not limited to: the operational, financial and legal risks detailed in Landstar’s Form 10-K for the 2015 fiscal year, described in the section Risk Factors, and other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements. Date Published: 10/19/2016

Model Definition Landstar is a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third party capacity providers and employees. Date Published: 10/19/2016

The Network Date Published: 10/19/2016 2015 Results $3.3 billion in revenue 1.8 million loadings 512 million dollar agents 9,500 BCO trucks (2015 year-end) 44,000 Carriers (2015 year-end) 14,000 Trailers (2015 year-end)

Transportation Management Services Percentage of Revenue 3Q15 3Q16 Truck Transportation Truckload Van equipment 55% 59% Unsided/platform equipment 35% 32% Less-than-truckload 2% 2% Rail intermodal 3% 3% Ocean and air cargo 3% 2% Date Published: 10/19/2016

Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled. Date Published: 10/19/2016 Revenue ($’s in thousands) Quarter to Date Year to Date Qtr over Prior Year Qtr Rate (1) Volume (2) Change Truck Revenue -5.4% -0.7% -0.06 Rail Intermodal Revenue -0.113 2.3% -9.3% Ocean/Air Revenue -0.26200000000000001 9.0999999999999998 -0.19400000000000001 Insurance Premiums NA NA 1.9% Total Revenue -6.4% Year over Prior Year Rate (1) Volume (2) Change Truck Revenue -8.3% -1 -8.3% Rail Intermodal Revenue -0.10100000000000001 0.11700000000000001 .4% Ocean/Air Revenue -0.22 0.11899999999999999 -0.127 Insurance Premiums NA NA 5.4% Total Revenue -0.08

Van Equipment Unsided/Platform Equipment Date Published: 10/19/2016 Truckload Loadings and Revenue per Load (Excludes LTL)

Industries Served As a Percentage of Revenue Q3 Q3 2015 2016 Quarter over Prior Year Quarter Growth Consumer Durables 18.7 20.8 4% Machinery 14.3 14.6 -4% Automotive 12.4 8.9 -33% Building Products 8.4 9.0 1% Metals 6.8 6.7 -9% AA&E, Hazmat 7.4 7.9 1% Foodstuffs 5.3 5.5 -3% Energy 4.5 3.7 -24% Other 22.2 22.9 -3% Transportation Revenue 100.0 100.0 -7% Date Published: 10/19/2016

15.1% 15.6% Gross profit equals revenue less the cost of purchased transportation and commissions to agents. Gross profit margin equals gross profit divided by revenue. Revenue on transactions with a fixed gross profit margin was 55% and 56% of revenue in the 2015 and 2016 year-to-date periods, respectively, and 55% of revenue in both the 2015 and 2016 third quarters. Date Published: 10/19/2016 Gross Profit (1) and Gross Profit Margin (2) ($’s in thousands) Quarter to Date Year to Date 15.1% 15.5% 15.1% 15.6% 3rd Qtr (3) Changes in gross profit margin % 2015 Period 15.1 Revenue - fixed gp margin 0.2 Revenue - variable gp margin 0.1 Change in mix and other 0.1 2016 Period 15.5 3rd Qtr YTD (3) Changes in gross profit margin % 2015 Period 15.1 Revenue - fixed gp margin 0.2 Revenue - variable gp margin 0.2 Change in mix and other 0.1 2016 Period 15.6

50.5% 43.9% Operating margin equals operating income divided by gross profit. Date Published: 10/19/2016 Operating Income and Operating Margin (1) ($’s in thousands) Quarter to Date Year to Date 50.4% 48.0% 48.0% 44.9% 3rd Qtr Changes in operating margin % 2015 Period 50.4 Other operating costs 0.7 Insurance and claims -1.9 SG&A 0.5 Depreciation and amortization -1.7 2016 Period 48 3rd Qtr YTD Changes in operating margin % 2015 Period 48 Other operating costs 0.5 Insurance and claims -2 SG&A 0.1 Depreciation and amortization -1.7 2016 Period 44.9

Date Published: 10/19/2016 Truck Capacity Data (All information other than fuel surcharges is provided as of the end of the period) KEY INCOME STATEMENT DATA ($ in Millions) % of 2013 % of 2013 % of 2012 Rev/GP Plan Rev/GP Proj Rev/GP QTR YTD QTR Sep 26, Dec 26, Sep 24, External Revenue $8,907 #REF! #REF! 2015 2015 2016 Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! BCO Independent Contractors 8,869 8,907 8,889 Truck Brokerage Carriers: Interest and Debt Expense #REF! #REF! #REF! Approved and Active (1) 29,127 29,728 30,860 Income Before Income Taxes #REF! #REF! #REF! Other Approved 13,813 14,715 15,691 42,940 44,443 46,551 Income Taxes #REF! #REF! #REF! Total Available Truck Capacity Providers 51,809 53,350 55,440 Trucks Provided by BCO Independent Contractors 9,441 9,500 9,510 Fuel Surcharges - BCO Loadings only ($ in thousands)(2) $43,165 $,174,661 $34,702 (1) Active refers to truck brokerage carriers who hauled freight for Landstar in the 180 day period immediately preceding the period end. (2) Fuel surcharges billed to customers during the applicable period on freight hauled by BCO Independent Contractors are paid 100% to the BCO and excluded from revenue and the cost of purchased transportation.

(1) Net cash is defined as cash and cash equivalents plus short term investments less outstanding debt. Date Published: 10/19/2016 Key Balance Sheet and Cash Flow Statistics ($’s in thousands) % of 2013 % of 2013 % of 2012 Rev/GP Plan Rev/GP Proj Rev/GP YTD YTD Sep 26, Sep 24, External Revenue $0.21 #REF! #REF! 2015 2016 Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Balance sheet (period end amounts): Debt to Capital 0.17 0.21 Net Cash (1) $61,636 $91,883 Cash flow: Cash flow from operations $,148,084 $,171,297 Capital expenditures $3,798 $17,833 Income Before Income Taxes #REF! #REF! #REF! Share repurchases $,107,214 $50,516 Dividends paid $54,467 $10,572 Returns: TTM Return on Equity 0.31 0.28000000000000003 TTM Return on Invested Capital 0.25 0.22 TTM Return on Assets 0.15 0.14000000000000001

Free Cash Flow / Share Purchases (In Thousands) Free cash flow is defined as cash flow from operations less capital expenditures, each set forth on the prior slide. YTD through September Date Published: 10/19/2016 Third quarter 2016 YTD (000's) Free cash flow (1) $,153,464 Share purchases $50,516 Ending common share count 41,775

Date Published: 10/19/2016